This is an MIT Sloan Management Review article. It has long been assumed that companies develop new products for consumers, while consumers are passive recipients -buying and consuming what producers create. However, this paradigm is fundamentally flawed, because consumers themselves are a major source of product innovations. The authors have framed a new innovation paradigm, in which consumers and users play a central and active role in developing products on their own. In this article, they summarize key findings from studies on consumer product innovation conducted in the United States, the United Kingdom and Japan. The authors describe three phases in the new innovation paradigm. Initially, markets for products and services with novel functionality are both small and uncertain, with consumers pioneering really new products (for example, the skateboard) for themselves. In the second phase, other consumers become interested in the new products. In the third phase, producer companies decide if the information on the design and function of the new product, and the projected market, are consistent with their risk profiles. The implications are significant for both consumers and producers, the authors note. Consumer innovators should realize that they play important roles in developing novel products and services. Businesses, for their part, need to think about how they can reorganize their product development systems to take advantage of prototypes developed by users. By focusing on product concepts that consumers have already prototyped and tested, companies can save money and improve their success ratios.
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Case Analysis of The Age of the Consumer-Innovator
The Age of the Consumer-Innovator is a Harvard Business (HBR) Case Study on Strategy & Execution , Texas Business School provides HBR case study assignment help for just $9. Texas Business School(TBS) case study solution is based on HBR Case Study Method framework, TBS expertise & global insights. The Age of the Consumer-Innovator is designed and drafted in a manner to allow the HBR case study reader to analyze a real-world problem by putting reader into the position of the decision maker. The Age of the Consumer-Innovator case study will help professionals, MBA, EMBA, and leaders to develop a broad and clear understanding of casecategory challenges. The Age of the Consumer-Innovator will also provide insight into areas such as – wordlist , strategy, leadership, sales and marketing, and negotiations.
Case Study Solutions Background Work
The Age of the Consumer-Innovator
case study solution
is focused on solving the strategic and operational challenges the protagonist of the case is facing. The challenges involve – evaluation of strategic options, key role of Strategy & Execution, leadership qualities of the protagonist, and dynamics of the external environment. The challenge in front of the protagonist, of The Age of the Consumer-Innovator, is to not only build a competitive position of the organization but also to sustain it over a period of time.
Strategic Management Tools Used in Case Study Solution
The The Age of the Consumer-Innovator case study solution requires the MBA, EMBA, executive, professional to have a deep understanding of various strategic management tools such as SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.
Texas Business School Approach to Strategy & Execution Solutions
In the Texas Business School, The Age of the Consumer-Innovator case study solution – following strategic tools are used - SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.
We have additionally used the concept of supply chain management and leadership framework to build a comprehensive case study solution for the case – The Age of the Consumer-Innovator
Step 1 – Problem Identification of The Age of the Consumer-Innovator - Harvard Business School Case Study
The first step to solve HBR The Age of the Consumer-Innovator case study solution is to identify the problem present in the case. The problem statement of the case is provided in the beginning of the case where the protagonist is contemplating various options in the face of numerous challenges that Consumers Paradigm is facing right now. Even though the problem statement is essentially – “Strategy & Execution” challenge but it has impacted by others factors such as communication in the organization, uncertainty in the external environment, leadership in Consumers Paradigm, style of leadership and organization structure, marketing and sales, organizational behavior, strategy, internal politics, stakeholders priorities and more.
Step 2 – External Environment Analysis
Texas Business School approach of case study analysis – Conclusion, Reasons, Evidences - provides a framework to analyze every HBR case study. It requires conducting robust external environmental analysis to decipher evidences for the reasons presented in the The Age of the Consumer-Innovator.
The external environment analysis of The Age of the Consumer-Innovator will ensure that we are keeping a tab on the macro-environment factors that are directly and indirectly impacting the business of the firm.
What is PESTEL Analysis? Briefly Explained
PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in The Age of the Consumer-Innovator case study. PESTEL analysis of " The Age of the Consumer-Innovator" can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.
How to do PESTEL / PEST / STEP Analysis? What are the components of PESTEL Analysis?
As mentioned above PESTEL Analysis has six elements – political, economic, social, technological, environmental, and legal. All the six elements are explained in context with The Age of the Consumer-Innovator macro-environment and how it impacts the businesses of the firm.
How to do PESTEL Analysis for The Age of the Consumer-Innovator
To do comprehensive PESTEL analysis of case study – The Age of the Consumer-Innovator , we have researched numerous components under the six factors of PESTEL analysis.
Political Factors that Impact The Age of the Consumer-Innovator
Political factors impact seven key decision making areas – economic environment, socio-cultural environment, rate of innovation & investment in research & development, environmental laws, legal requirements, and acceptance of new technologies.
Policy Making Impact on The Age of the Consumer-Innovator
Government policies have significant impact on the business environment of any country. The firm in “ The Age of the Consumer-Innovator ” needs to navigate these policy decisions to create either an edge for itself or reduce the negative impact of the policy as far as possible.
Data safety laws – The countries in which Consumers Paradigm is operating, firms are required to store customer data within the premises of the country. Consumers Paradigm needs to restructure its IT policies to accommodate these changes. In the EU countries, firms are required to make special provision for privacy issues and other laws.
Competition Regulations – Numerous countries have strong competition laws both regarding the monopoly conditions and day to day fair business practices. The Age of the Consumer-Innovator has numerous instances where the competition regulations aspects can be scrutinized.
Import restrictions on products – Before entering the new market, Consumers Paradigm in case study The Age of the Consumer-Innovator" should look into the import restrictions that may be present in the prospective market.
Export restrictions on products – Apart from direct product export restrictions in field of technology and agriculture, a number of countries also have capital controls. Consumers Paradigm in case study “ The Age of the Consumer-Innovator ” should look into these export restrictions policies.
Foreign Direct Investment Policies – Government policies favors local companies over international policies, Consumers Paradigm in case study “ The Age of the Consumer-Innovator ” should understand in minute details regarding the Foreign Direct Investment policies of the prospective market.
Taxation & Regulation Impact on The Age of the Consumer-Innovator
Corporate Taxes – The rate of taxes is often used by governments to lure foreign direct investments or increase domestic investment in a certain sector. Corporate taxation can be divided into two categories – taxes on profits and taxes on operations. Taxes on profits number is important for companies that already have a sustainable business model, while taxes on operations is far more significant for companies that are looking to set up new plants or operations.
Tariffs – Chekout how much tariffs the firm needs to pay in the “ The Age of the Consumer-Innovator ” case study. The level of tariffs will determine the viability of the business model that the firm is contemplating. If the tariffs are high then it will be extremely difficult to compete with the local competitors. But if the tariffs are between 5-10% then Consumers Paradigm can compete against other competitors.
Government Scheme & Subsidies Impact on The Age of the Consumer-Innovator
Research and Development Subsidies and Policies – Governments often provide tax breaks and other incentives for companies to innovate in various sectors of priority. Managers at The Age of the Consumer-Innovator case study have to assess whether their business can benefit from such government assistance and subsidies.
Consumer protection – Different countries have different consumer protection laws. Managers need to clarify not only the consumer protection laws in advance but also legal implications if the firm fails to meet any of them.
Political System & Stability, and its Impact on The Age of the Consumer-Innovator
Political System and Its Implications – Different political systems have different approach to free market and entrepreneurship. Managers need to assess these factors even before entering the market.
Freedom of Press is critical for fair trade and transparency. Countries where freedom of press is not prevalent there are high chances of both political and commercial corruption.
Corruption level – Consumers Paradigm needs to assess the level of corruptions both at the official level and at the market level, even before entering a new market. To tackle the menace of corruption – a firm should have a clear SOP that provides managers at each level what to do when they encounter instances of either systematic corruption or bureaucrats looking to take bribes from the firm.
Independence of judiciary – It is critical for fair business practices. If a country doesn’t have independent judiciary then there is no point entry into such a country for business.
Government attitude towards trade unions – Different political systems and government have different attitude towards trade unions and collective bargaining. The firm needs to assess – its comfort dealing with the unions and regulations regarding unions in a given market or industry. If both are on the same page then it makes sense to enter, otherwise it doesn’t.
Economic Factors that Impact The Age of the Consumer-Innovator
Social Factors that Impact The Age of the Consumer-Innovator
Technological Factors that Impact The Age of the Consumer-Innovator
Environmental Factors that Impact The Age of the Consumer-Innovator
Legal Factors that Impact The Age of the Consumer-Innovator
Step 3 – Industry Specific Analysis
What is Porter Five Forces Analysis
PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in The Age of the Consumer-Innovator case study. PESTEL analysis of " The Age of the Consumer-Innovator" can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.
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